Friday, May 17, 2013

The Difference Between TV and Online Business Models


It’s all about size, isn’t it?

About how many.

That’s how TV made its fortune.  By selling size.

It’s what we know.  And so, it’s what advertisers look for when they go online.

And, as we’re finding out, it’s not working all that well.

The business model of television is to deliver viewers to advertisers.  It still achieves this business objective better than any other media.

Is the business model of online any different?

You bet.

The business model of online is to deliver advertisers to viewers.

The result?

TV delivers high exposure and low involvement.  It’s called reach.  And it’s advertiser-initiated.

Online delivers low exposure and high involvement.  It’s called search.  And it’s consumer-initiated.

Both are critical to the success of a brand.

But, they are very different processes.

And, they should remain so.

But instead, advertisers are trying to make online work like TV.

While consumers are trying to make TV work like online.

Exposure and involvement are both critical to success.

But only failure will be achieved if advertisers continue to try to make both come from one media. 

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